WRONG TAX DEDUCTION by BANK ON TAX EXEMPT INT

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2011 DEAR SIR,
A Bank has wrongly deducted Tax in AY2010-11 on Interest(which was fully TAX exempt) earned on FDRs being maintained with them for General Provident Fund IN R/O teachers of Govt. aided school -the GPF subscription qualified for deduction u/s80C.
Is there some remedy available to bank for obtaining refund from INCOME TAX DEPTT./or reversing the debited amt. for wrong tax deduction? or teachers would have to claim from ITAX Deptt.If so, under what section wud be said intt. shown in ITR.
SINCE LAST DATE FOR FILING ITR IS FAST APPROACHING ,WOULD BE GRATEFUL FOR EARLY REPLY.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 July 2011 The bank can seek refund from the IT department. Delhi high court decision in the case of PASUPATI ACRYLON LTD VS. CBDT REPORTED IN (2011) 237 CTR 138 will be helpful to solve this issue.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2011 Dear Sir,
What is to be done by teachersif Bank refuses to act?

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